Where there was existence of
yellow taxis which posed a significant competitive constraint on other taxi
operators in the city of Kolkata. In such a scenario, it was difficult to
accept the contention of the Meru cabs regarding UBER Group’s dominance in providing
the radio taxi services in Kolkata
Facts:
a)
Meru Travel Solutions Pvt. Ltd.
(‘Meru cabs’) filed information against Uber Group alleging abuse of dominance
by latter in the radio taxi service market in Kolkata. It was alleged that Uber
Group was following the practice of predatory pricing in Kolkata and was able
to offer low prices as it had received huge global funding.
b)
Meru cabs also alleged that
before Uber entered the relevant market, the average per price kilometre was Rs
20 in Kolkata and after its entrance to the market it started offering Rs 9 per
km even when it was incurring losses
c)
The Meru Cab prayed CCI to
direct the DG to investigate the matter and hold the conduct of Uber Group to
be abusive in the relevant market.
d)
However, Uber Group contended
that the active presence of yellow taxies in Kolkata poses a strong competitive
constraint on radio taxis which warrants inclusion of yellow taxis in the
relevant product market definition.
The Competition
Commission of India held as under:
1) The existence of
yellow taxis poses a significant competitive constraint on the behaviour of
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